CONCORD, N.H. (AP) American Tissue Inc., the nations fourth-largest maker of tissue, filed for Chapter 11 bankruptcy protection Monday.
American Tissues products include toilet paper, facial tissue, napkins, towels, paper plates and paper bags that are sold as store brands and are also supplied to institutions like schools, malls and hospitals.
The Hauppauge, N.Y.-based company made the filing in U.S. Bankruptcy Court in Wilmington, Del. The bankruptcy filing also includes 27 of American Tissues U.S. subsidiaries, from Oregon to New Hampshire.
The move followed the decision Thursday by Moodys Investors Service to lower American Tissues credit rating in part because of accounting irregularities that led to the resignation of its chief financial officer.
Company officials have cited cyclical downturns in the pulp market and other factors for recent layoffs at mills in Wisconsin, Tennessee, New Hampshire and New York.
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